Great Energy has planned to purchase major shareholder coal mine investment of 7.3 billion yuan or annual increase of more than 1.2 billion profit

Great Energy, which was transformed from Xinnet Video, today launched a non-public offering plan and plans to raise no more than RMB 7,539 million. The acquisition of the remaining coal assets of the controlling shareholder, Yi Coal, has been locked in the net profit of the four companies to be acquired last year. More than 1.2 billion yuan.

The plan shows that DaYou Energy intends to issue non-public issuance of no more than 350 million shares to no more than 10 specific investors. The issuance price will be no less than 21.54 yuan/share, and 7.379 billion yuan after deducting the issuance cost will be used to purchase all the coal. The Group's and its subsidiaries' equity held by Yihai Energy's coal business includes: 100% equity of Sunshine Mining held by Yimei Coal Group, 100% equity of Tieshenggou Coal Mine, and 49% equity of Yuxin Coal; Yihai Energy holds 100% equity of Tianjun Yihai.

This actually means that the Coal Mining Group will restructure its energy resources and market its coal assets as a whole, eliminating competition in the industry. In 2010, Yimei Coal Group injected some of its assets related to coal production into its controlling shareholder by subscribing Dayou Energy to issue shares through its assets. The Coal Group also holds some of its coal business related assets, but this Reasons such as ownership, etc. could not be injected at the time.

Tianjun Yihai is the largest asset of the four companies to be acquired. Of the total 7.37 billion yuan, approximately 5.727 billion yuan will be used to acquire 100% of Tianjun Yihai. Tianjun Yihai is also the most profitable asset. In 2011, the coal output was 4.1642 million tons, operating income was 2.76 billion yuan, and net profit was approximately 1.26 billion yuan.

In addition to Tianjunyi Overseas, Dayou Energy acquired 100% equity of Sunshine Mining, 100% equity of Tieshenggou Coal, and 49% equity of Yuxin Coal, with an investment of 486 million yuan, 691 million yuan and 474 million yuan respectively.

Among them, Sunshine Mining was established in June 2011 and is currently in the construction phase of coal mines. It is scheduled to be put into production in June 2014, and will reach a designed production capacity of 450,000 tons/year in July 2015. After the project reaches the designed production capacity, it is expected that Annual sales income of 257 million yuan, net profit of 78.47 million yuan. Tieshenggou Coal Industry was established in 1999. In 2011, it produced 939,200 tons of raw coal, and lost 7.38 million yuan in the same year. Tieshenggou Coal will accept technical reforms. It is expected that the output in 2012 will be 950,000 tons, and the output in 2013 will reach 1.2 million tons. After reaching the designed production capacity, it is estimated that the annual sales income will be 570 million yuan and the net profit will be 110 million yuan. Yuxin Coal was established in 2001, with Yeemei Group holding 49% equity and Xinjiang Baihua Village Co., Ltd. holding 51%. Yuxin Coal achieved a net profit of 77.37 million yuan in 2011, 49% of its net profit was 38.4 million yuan, which is the profit generated by the Dahuangshan No. 1 well, and the Dahuangshan No. 7 well is expected to start production in February 2013. After reaching the designed production capacity, it is expected that the annual sales income will be 220 million yuan, and the net profit will be 60.11 million yuan. The 49% equity will have a net profit of 29 million yuan.

According to the above-mentioned situation, it is conservatively estimated that the above 4 companies will increase their annual net profit by approximately 1.5 billion yuan after they reach full production.

According to Great Energy, the increase in reserves is of vital importance to coal production enterprises. If the issuance is completed, it will increase the reserves of coal resources by approximately 377 million tons and increase the approved production scale by 4.45 million tons/year, thereby increasing profitability.

In addition, the shares held by Yeemei Coal Co., Ltd. will be reduced from 84.71% to 59.66% after the issuance, but it is still the actual controller.